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Jan 20, 2023
10:46
:15
am
RGGeemer
All-American
That sounds good. My Roth IRA is with fidelity, is there an equivalent MM there?
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RGGeemer
Previous username
rggee
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RGGeemer
Joined
Aug 18, 2010
Last login
May 6, 2024
Total posts
67,535 (693 FO)
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Messages
Author
Time
Is a Roth IRA a good idea for an emergency savings? I understand you can pull
RGGeemer
1/20/23 10:36am
They need to raise the income limit for a Roth
cheezedawg
1/20/23 10:38am
It's insane that there is an income limit to begin with on a Roth
Skeptical Optimist
1/20/23 10:47am
isn't the limit kind of useless? Anyone can get money into roth.
SalmonOfCapistrano
1/20/23 10:53am
Never been a problem for me
supertux
1/20/23 10:55am
If only they raised it as fast as they are raising the social security limit
cougaman
1/20/23 11:24am
It's stupid that the married limit is way less than double what it is for
JuicyJam
1/20/23 11:27am
That is odd
RGGeemer
1/20/23 11:28am
Even Roth IRAs have a 10% early withdrawal penalty
Bainge
1/20/23 10:38am
Not on contributions, right? Just on earnings?
RGGeemer
1/20/23 10:38am
you should be able to withdraw contributions without penalty
LeonMarek
1/20/23 10:39am
<< Deleted >>
Bainge
1/20/23 10:40am
Don't think that's true.
RGGeemer
1/20/23 10:41am
Yeah I am getting mixed answers so I deleted it
Bainge
1/20/23 10:42am
False. Doesn't apply to contributions.
supertux
1/20/23 10:43am
Correct, I have taken funds out w/o penalty
PortlandCoug
1/20/23 10:51am
No. Roth's have a 10% early withdrawal penalty unless held 5 years or taken
JAGA97
1/20/23 10:38am
Not true. You can pull contributions at any time.
VenturaCoug
1/20/23 10:39am
RE: No. Roth's have a 10% early withdrawal penalty unless held 5 years or taken
RGGeemer
1/20/23 10:41am
Yes, it’s a good idea, but you may be forced to pull from depressed investments.
VenturaCoug
1/20/23 10:38am
Yeah this is the real issue. Good chances you need those funds when the market is down.
supertux
1/20/23 10:40am
So is a 1% savings account a better idea than a Roth IRA for emergency savings?
RGGeemer
1/20/23 10:42am
No, but 4% might be. It just depends.
supertux
1/20/23 10:44am
But you can put it into a Roth at vanguard and get 4% in vanguard federal money market. Best of both worlds. Maybe keep
supertux
1/20/23 10:44am
That sounds good. My Roth IRA is with fidelity, is there an equivalent MM there?
RGGeemer
1/20/23 10:46am
Sure
supertux
1/20/23 10:48am
I think the way to look at it is the Roth maybe justifies a slightly smaller
VenturaCoug
1/20/23 10:45am
Bask bank is a good one
supertux
1/20/23 10:46am
But yeah I would keep some in savings and excess in Roth. Want to minimize the chances of needing to use the Roth.
supertux
1/20/23 10:50am
I pulled a small amount last year to cover some grad school expenses literally
LeonMarek
1/20/23 10:53am
Sure. Why not? Just make sure you keep proof of contributions and keep track of any withdrawals you make.
supertux
1/20/23 10:39am
My understanding is that you can pull out the contributions without penalty but
PokeMAN
1/20/23 10:41am
Can use HSA too. Build up your hsa and save receipts, but this has the same
VenturaCoug
1/20/23 10:41am
At a minimum, you can put in contributions and keep in cash
Cougforgood
1/20/23 10:44am
Yep or some decent money market funds right now. Vanguards federal one is like 4%
supertux
1/20/23 10:46am
I keep my pure EMERGENCY 6 months savings in an online HY Savings account
The Dark Knight
1/20/23 10:49am
Didn't realize savings account interest rates were so high. That makes more
RGGeemer
1/20/23 10:51am
What online HY Company are you using?
PokeMAN
1/20/23 10:53am
Discover
The Dark Knight
1/20/23 10:58am
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